Peet's Coffee & Tea (NASDAQ: PEET), the roaster and marketer of coffee and tea, announced Monday that it will be acquired by privately held group Joh. A. Benckiser (JAB) for roughly $1 billion.

The deal will see JAB pay $73.50 per share for Peet's and it has already been unanimously agreed by the Peet's board of directors. That was not really surprising as the offer is roughly 29 percent over the company's Friday closing price.

When the deal is finalized, Peet's Coffee & Tea will be privately owned. Current management team will continue to run the company and it will also remain in the San Francisco area.

“We are very excited about this next chapter in Peet's rich history,” said Patrick O'Dea, President and CEO of Peet's in a statement. “Over many years we've demonstrated an unyielding commitment to craft coffees and teas of uncompromised quality. This commitment is what has distinguished the Peet's brand among all others and will continue to guide us as we go forward.”

“At JAB, we are committed to owning and investing in companies with strong, premier-quality brands and great people whose values we share,” said Bart Becht, Chairman of JAB. “Peet's is just such a company and we look forward to preserving the company's culture and core values, while supporting management's vision for future growth."

The financial advisor to Peet's for the deal is Citigroup, while Morgan Stanley is serving as financial advisor to JAB.

Following the news of the acquisition, Peet's shot up Monday to roughly $73.50 (meeting the offer price) after closing at about $57 on Friday.

Meanwhile, Green Mountain Coffee Roasters (NASDAQ: GMCR) spiked Monday morning, peaking at $18.14 after closing Friday at about $17.50. This could be because of the Peet's acquisition news, but Green Mountain has since spent Monday dropping fast.

Benzinga spoke with a couple analysts about what they thought of the news, and the general consensus was that coffee stocks like Coffee Holding (NASDAQ: JVA) and Green Mountain spiked higher in sympathy, but are now down.